Legal Counselling

Vietnam: Late finalization of construction works shall be fined up to VND 100 million!

08:59, 11/05/2023

Circular No. 09/2016/TT-BTC of the Ministry of Finance of Vietnam regulating state-funded projects, including: public investments, credit capital guaranteed by the Government, loans secured by the State’s assets and State-owned enterprises’ development investments.

According to Circular No. 09/2016/TT-BTC of the Ministry of Finance of Vietnam, State-funded projects, upon completion, must make final settlements. Finalization of completed projects towards the goal of evaluating the results of the investment process; responsibility of investors and contractors. Through the settlement work, state management agencies learn from experience, perfect the state's mechanisms and policies, and improve the efficiency of investment capital management throughout the country.

Finalization of completed projects plays a very important role in state management activities. In case the investor, project management board, contractor make mistakes in the final settlement, causing waste of the State's investment capital, they may be sanctioned according to the provisions of law.

Investor, management board committing violation against regulations on finalization of completed projects shall be fined up to VND 100 million

Investor and management board committing violation against regulations on finalization of completed projects shall be sanctioned according to Article 18 of Decree No. 121/2013/NĐ-CP of Vietnam’s Government. To be specific:

NO.	VIOLATION	FINE
1	Letting the contractor’s construction supervisor sign papers in the acceptance document without having certificate of works construction supervision practice or the certificate does not match the contents of acceptance	VND 5 - 10 million
1	Accepting and putting the works into operation without opinion of the competent state authority on inspection of acceptance as prescribed	VND 5 - 10 million
2	Lacking the sheet of calculation of volume in the acceptance document	VND 10 - 20 million
3	Having no certificate of input material, result of material experiment and structural components as prescribed in the acceptance document	VND 30 - 50 million
4	Late settlement of works after the works items and construction works have been accepted and handed over and put into operation	VND 20 - 100 million
5	Payment without complete payment documents as prescribed	VND 30 - 50 million
6	Putting the completed works items and construction works into operation without any acceptance	VND 50 - 60 million
7	Performing the acceptance without performance volume or wrong acceptance of actual volume of work	VND 70 - 80 million
7	The works has been accepted but does not ensure the quality based on design documents and works completion documents	VND 70 - 80 million

If the contractor violates in the finalization of the completed project, a fine of between VND 10,000,000 and 100,000,000 shall be imposed.

According to Article 31 of Decree No. 121/2013/NĐ-CP of Vietnam’s Government, fines for violations against regulations on finalization of completed projects imposed for contractors are as follows:

NO.	VIOLATION	FINE
1	Failing organize the acceptance by itself	VND 10 - 15 million
	Performing the acceptance inconsistently with the order and procedures as prescribed
	Certifying the works completion document improperly
	Failing to formulate documents, materials and drawing related to construction works in Vietnamese and foreign language in case the investor or contractor is a foreigner
2	Extension of time for completion of documents and materials for the acceptance, payment and settlement of works as prescribed	VND 20 - 30 million
3	Performing the acceptance when there is volume of construction	VND 30 - 40 million
	Failing to perform the acceptance properly with the quality and actual volume of construction
	Failing to certify the works completion document in line with the actual construction
4	Handing over the works to the owner when the acceptance has not been held as prescribed	VND 80 - 100 million

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